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Upswing in Austria’s SMEs

Published: May 5, 2011; 07:58 · (Vindobona)

Austrian small and medium enterprises expect a significant improvement in business conditions for 2011. The equity situation however remains problematic.

Upswing in Austria’s SMEs / Picture: © Vindobona.org

Austrian SMEs assess the business situation for this year as predominantly positive. 54.8% of 1,800 companies surveyed by Creditreform consider their business situation as "good" or "very good". In 2010 they were still 41.2%. Only 6.4% consider themselves to be in a bad state (2010: 15.3%). Creditreform’s board member Helmut Rödl asserts: "The upturn has arrived for the entire range of small and medium sized businesses".

New orders increased for 36% of respondents. Orders in the construction industry are declining. But for 38% of the companies, sales are increasing, while 20% are affected by sales declines.

Profitability has however not reached pre-crisis levels yet. In the last six months, a third of the company registered declines in profits, while a quarter has registered increases.

The equity situation seems to be tensing up again. 24% of SMEs show an equity ratio below 10%. "Financing conditions for enterprises have still not returned fully to normal even after the economic upswing", according to Creditreform. This is related to rising insolvency statistics.

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